Give your dough to the baker

Translation is one of the oldest professions in the world. It goes back centuries; even before the making of the Rosetta Stone. It is a very diverse industry with heavy fragmentation and worldwide dependence. Translation is an art and can only be handled accurately by properly trained professionals–typically native speakers, working in the countries they are translating for.

Localization on the other hand is a more recent profession. It got its start after the PC infiltrated businesses and homes worldwide in the late 20th century. The Localization market is at times considered a niche segment of the overall translation market since it depends heavily on translation– some 65% of a localization project consists of translation-related tasks.

What should be noted is that companies involved in localization have to be involved in translation, but the reverse is not true. Localization requires complicated processes, tools and specialized technical know-how that are essential to fulfill the remaining 35% of the localization project's needs. While I have deep respect for translators, most are not equipped to handle all localization tasks. Why is this?

Advances in Internet technologies, development tools, authoring tools, and platforms have expanded the use of different file formats and build environments. Software applications and manuals are no longer based only on simple text files or Word documents. Java, XML, ASP .net, PHP, and a slew of other formats are now used in many applications and products.

Furthermore, with the continuous move toward technology convergence, companies are marrying software, electronics, mechanics, chemistry, biology and other sciences to develop high-end solutions to effectively compete in the ever more demanding high-tech world.

Translators forced to handle localization projects alone, are now expected to understand different subjects and file formats, and accurately translate only what is needed, without modifying tags, links or code. Heaven forbid they use the wrong process or make mistakes, since a significant amount of leveraging and debugging time would be required to fix, build and test the localized product.

So, although translation may be an art, localization is both an art and a science. Don’t short-circuit the process or underestimate the effort required. It takes experienced engineering and translation professionals to properly implement an efficient translation-reuse process, as well as experienced managers to coordinate efforts to bring a localization project to a safe and on-schedule landing.

Asking a translator to handle your entire localization project is like expecting your developers to write development plans, develop software, perform SQA and create documentation, all while ensuring on-time delivery of each and every step.

Whenever my daughter bakes cookies, she either burns herself, the cookies or both. This keeps reminding me of the old and true Arabic proverb: Give your dough to the baker even if he eats half of it. International users are notorious for shelving poorly localized products and using the English version instead, or even worse, your competitor's version. Don't risk burning your company's reputation overseas just to save a few dollars; hire localization professionals!

Main Street or Wall Street when Choosing a Localization Vendor

The largest public localization company, Lionbridge, reported last week below expectations net earnings and recently lost a third of its market capitalization.

In a drive to become the number one localization vendor, Lionbridge grew since its IPO by buying companies like Bowne Global Solutions, International Communications, Mentorix and Data Dimensions. They financed their expansions with public money.

To retain their newly bought clients and aggressive revenue growth projections, Lionbridge consistently spent millions of dollars every year on sales and marketing. This was incremented by the significant administrative costs required to operate a public company, heavily dependent on public financing. The combined costs (26% of revenue) cut deep into profit margins and return to investors. New business continues to stream in but at the expense of profitability.

Looking at their financial performance over eight years in public life, one cannot avoid detecting so far a failed struggle to streamline divisions, create efficiencies and reduce costs-- tasks not easily accomplished in a service industry heavily dependent on a global labor force costing 65 cents for each earned dollar.

This leaves them with 9 cents on the dollar to cover R&D, depreciation & amortization, interest, restructuring costs, employee stock compensation and yes, the elusive profit as well.

While this Wall Street company enjoyed fast revenue growth, Main Street companies labored for long term viability and healthy margins. Without access to public funds, they cannot spend liberally on administrative expenditures, marketing, sales or acquisitions. They focus instead on building solid business processes generating sustainable margins permitting them to invest in organic growth, thus ensuring their clients' long term success and retention.

Chasing market share is a virtue and remains at the heart of our capitalistic society. But successful businesses must work toward sustainable profitability, not just sustainable market growth.

Next time you need a localization partner, take a stroll down Main Street; the gems you stumble on will surprise you!